Does JMFS guarantee Jersey Mikes' obligations under any Area Development Agreement?

Based on the 2025 Jersey Mike's Franchise Disclosure Document, JMFS may guarantee obligations in certain financing situations. Specifically, JMFS and/or Company may partner with a third-party lender to provide financing for the Coach Rod Smith Program. If this occurs, franchisees will sign financing documents required by the third-party lender, which may contain terms that differ from JMFS's standard promissory note and guaranty. In such instances, JMFS and/or Company may guarantee those obligations.

This implies that JMFS's guarantee is not a standard feature of all Area Development Agreements but is contingent on specific financing arrangements, such as the Coach Rod Smith Program. This program is designed to provide financial assistance, and JMFS's guarantee could be a condition for securing financing from a third-party lender.

For prospective Jersey Mike's franchisees, this means that while JMFS does not automatically guarantee all obligations under Area Development Agreements, they might do so if the franchisee participates in specific financing programs like the Coach Rod Smith Program. It is important for potential franchisees to inquire about the details of these financing programs and the conditions under which JMFS would provide a guarantee, as the terms could significantly impact their financial responsibilities and the overall structure of their financing agreements.